Yokohama, Kumho considering alliance

The two firms, the world's eighth and 12th largest tire makers, disclosed Dec. 2 that they signed a memorandum of understanding on Nov. 29 covering the various aspects of their interest.

By exchanging technology, the companies aim to increase their competitiveness and enhance their growth potential...by sharing R&D resources and making more effective use of them through joint research and development on tires and related technologies, Yokohama said.

The companies also plan to enter into a capital alliance based on cross-shareholdings.

Yokohama and Kumho Tire will start discussions on the details of the allianceincluding methods for obtaining each other's shares, the size of shareholdings and the timing of acquisitionwith the aim of signing a legally binding contract as early as possible.

Yokohama is the world's No. 8 tire maker with $5.57 billion in tire-related sales in 2012, while Kumho was ranked No. 12 with $3.6 billion.

Yokohama operates 12 tire plants in seven countries, while Kumho has eight plants in three countries.

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